Background Facts: Pillar Capital Corp. initiated foreclosure proceedings due to Tyran Transport Ltd.'s default on a loan agreement. The loan was secured by collateral mortgages on properties owned by Horseshoe Valley Ranch Ltd., Elvern Kenneth Esau, Stacy Elvern Esau, and Leanne Alma Esau. The appellants opposed the foreclosure and sought to move the matter to a trial list, raising six defenses.

Key Issues: The chambers judge found three of the defenses raised by the appellants to present triable issues but decided these could be resolved through hybrid procedures rather than a full trial. The appellants sought leave to appeal, arguing that the chambers judge erred in dismissing their misrepresentation defense without ordering discovery. The misrepresentation claim was based on an email regarding the loan agreement terms, which the judge found ambiguous and not an actionable misrepresentation of fact. The judge also permitted limited discovery and expert evidence exchange to address the criminal interest rate and improvident realization defenses but did not move the case to a full trial.

Application Outcome: The Court of Appeal dismissed the appellants' application to vary the order, holding that the justice properly exercised discretion and that an appeal would be premature. The procedural rulings were upheld, with no final monetary judgment specified.